Place of supply of services
The draft amendment would transpose into Slovak law provisions concerning the place of supply of services from EU law (Article 5 of the Council Directive 2008/8/EC, amending Directive 2006/112/EC).
Accordingly, revisions to the rules for the place of supply of telecommunications, television, and radio broadcasting and electronically supplied services to non-taxable persons are to be introduced from 1 January 2015. As of 1 January 2015, the place of supply of these services to non-taxable persons would be the place where the service recipients are established, have their permanent address or usually reside (i.e., in the country of the customers).
The “mini one-stop shop” regime
The new rules could require service providers to register as VAT payers in all EU Member States in which they supply their services. To prevent an additional administrative burden on businesses, the scope of the VAT “mini one-stop shop” regime would be expanded. Suppliers of services would be able to comply with their obligation to declare and pay VAT (attributable to the individual EU member states of consumption) by means of one VAT return that is submitted electronically via a web portal in their EU Member State of identification. This VAT return, along with the amount of VAT paid, would then be transmitted by the EU Member State corresponding to the place of consumption (i.e., the EU Member State entitled to receive this VAT payment).
Filing frequency requirements for recapitulative statements
Recapitulative statements generally must be submitted once a calendar month. According to the current text of the VAT law, a VAT payer may also submit a recapitulative statement for a calendar quarter, provided that the value of tax-exempt goods supplied to other EU Member States in the respective calendar quarter and in each of the preceding four calendar quarters did not exceed €100,000.
Under the proposed amendment to the VAT law, the maximum limit for the application of the exception to the general rule on the required filing frequency would be reduced from €100,000 to €50,000.
Electronic cash register rules
A draft amendment to the law governing the use of electronic cash registers proposes that every tax authority be able to assign a tax code to an electronic cash register.
The VAT law amendments are proposed to be effective 1 January 2015, except for the provisions related to the required filing frequency of recapitulative statements and the provisions governing the receipt of applications and the issuance of approvals of the filing rules for persons established and for persons not established in the EU—those provisions would be effective 1 October 2014.
For more information, contact a KPMG tax professional in Slovakia:
+421 2 599 84 111